Wood Group slashes losses as Amec Foster Wheeler merger drives contract wins
Energy services firm Wood Group narrowed its losses and posted a surge in revenues last year as its takeover of Amec Foster Wheeler began to pay off.
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The figures
Wood Group's revenues soared 79 per cent to $11bn (£8.3bn) in the year to the end of December.
Loss for the period was $7.6m, down from $30m the year before.
Net debt narrowed by 6 per cent to $1.5bn.
The firm’s order book stood at $10.3bn.
Why it’s interesting
The FTSE 250 oil field services firm beat market expectations for the full year as it reaped the rewards of its 2017 takeover of Amec Foster Wheeler.
Wood said it had secured contracts worth more than $600m as a result of the deal, up from its previous estimate of $500m.
The company said “well-aligned operational cultures” had allowed the merger to complete ahead of schedule in 12 months.
Wood said it is well positioned for growth trends in the energy and industrial markets in 2019, but it warned there had been a slower recovery in the oil and gas sectors.
Shares in Wood Group fell almost eight per cent following the announcement.
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What Wood Group said
Chief executive Robin Watson said: “Wood delivered good organic growth in 2018. We completed the integration of Amec Foster Wheeler at pace, increased cost synergy targets by 24 per cent and unlocked new opportunities across our broader range of capabilities and sectors to secure revenue synergies of over $600m.
“We have built a unique platform and are in the early stages of what we can achieve. Our performance in 2018 has strengthened our conviction in Wood's potential and we are excited about our prospects. We are confident of achieving further growth in 2019.”